American Express Stock Should Reach New Highs

With many credit card holders under siege by hackers, American Express has one of the lowest fraud rates in the credit card industry and a customer base that continues to spend. The company is also benefitting from higher credit quality and healthy holiday spending.

American Express (ticker: AXP), which caters to high-end consumers, benefits too from big annual card fees. And Amex, as a closed network, acts as the card issuer,...